George W’s Tax Cut and the 2004 Election

Dick Morris hails what he calls “an unparalleled act of political brilliance,” President Bush’s tax cut “compromise.”
Morris notes that ordinarily, one problem with passing landmark legislation is that you lose it as an issue. Here, because the tax cuts enacted this year are slated to expire in 2006, “Bush can send refund checks of $400 for each child to 25 million households this summer, slash the tax on dividends and capital gains to 15 percent and reduce tax rates on all three brackets – all effective immediately – and still be able to base his re-election campaign on the need to preserve his tax cuts.”
Morris’ theory is that, while the constituency for cutting taxes is a thin majority at best, the constituency for raising taxes is close to non-existent. His view is that in 2004, “every Democratic candidate will have to answer the question: ‘Will you support extending the Bush tax cut?'” The problem is that: “A ‘no’ will be required to win enough primary votes to get the nomination. But a ‘yes’ will be necessary to prevail in the general election. Bush has put the Democrats in an impossible position.”
Let’s hope he’s right. Via Real Clear Politics.